Figure: Two Farms Refer to the Figure

question 52

Multiple Choice

Figure: Two Farms Refer to the figure. If a farmer owns two farms, Farm 1 and Farm 2, and is under contract to produce 400 bushels of corn for a food processor, should the farmer produce 200 bushels of corn from each farm as shown in this diagram?

• A) Yes, splitting production evenly between farms, or factories, is the method to minimize the costs of production.
• B) No, he should produce all 400 bushels from Farm 2, the low-cost farm.
• C) No, he should produce more corn from Farm 1 and less corn from Farm 2 so that the marginal cost of the last bushel of corn is equal across both farms.
• D) No, he should produce less corn from Farm 1 and more corn from Farm 2 so that the marginal cost of the last bushel of corn is equal across both farms.

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Definitions:

Venous Congestion

Venous congestion occurs when blood accumulates within the venous system, leading to increased pressure and swelling in the affected area.

Hydrostatic Pressure

The pressure exerted by a fluid at equilibrium at any point of time due to the force of gravity.

Oncotic

Referring to osmotic pressure exerted by proteins, particularly albumin, in the blood plasma or other fluids.

Total Water Volume

The sum of all water within a person's body, important for maintaining cellular function and overall health.